KARACHI: A leading Pakistani company announced on Friday it was going to set up Samsung mobile phone assembly plant in Pakistan, adding it had already approached the country’s telecom regulator to secure license for the purpose.
“Lucky Motor Corporation (LMC), a subsidiary of Lucky Cement, has entered into an agreement with Samsung Gulf Electronics (a company based in South Korea) for producing Samsung branded mobile phone devices in Pakistan,” the Pakistani organization said in a written statement.
“In pursuance of this transaction, LMC has also initiated the process of seeking necessary regulatory approvals to carry on the business,” the statement continued, adding that the local firm had “filed an application with the Pakistan Telecommunication Authority [PTA] to secure” the permit.
The cement company diversified in the automobile sector by manufacturing, assembling, marketing and distributing KIA and Peugeot vehicles. It also sells spare parts and accessories of these cars in Pakistani market.
The company announced it would set up its cellphone production facility at LMC’s existing plant in Karachi’s Bin Qasim Industrial Park.
The production facility is expected to be completed in December, said the company statement.
According to the PTA, Pakistan’s total annual market size of mobile phones is estimated at 34 million handsets out of which 20 million are 2G and 14 million are 3G/4G.
In terms of its value, the market size of mobile sets in Pakistan is estimated to be about $2.5 billion, based on import data provided by the Pakistan Bureau of Statistics.
The PTA informed Arab News last month that the country had manufactured 5.34 million 2G and 2.23 million 3G/4G devices since the beginning of the year until May 2021.
While the LMC says it will soon discuss its investment level with Samsung, analysts maintain the amount could be about $100 million.
“The investment size is rumored to be around $100 million,” Muhammad Sohail, chief executive officer of Topline Securities, said.
“Our working suggests the venture can generate an annual revenue of about $300-600 million and the project can make net profits of Rs1 billion to Rs1.5 billion in its formative phase,” he added.
Samsung had setup an assembly plant in Bangladesh in 2018 which proved to be a success, with an average output of about 2.5 million units annually.
The Pakistani government is also providing protection to the industry though its Mobile Device Manufacturing Policy which can potentially reduce the rates of locally manufactured handsets by about 50 percent.
Pakistan has granted a 10-year mobile device manufacturing authorization to 19 companies in the country under the mobile device manufacturing regulations.
Samsung to set up mobile phone manufacturing facility in Pakistan by end of 2021
https://arab.news/4dtk7
Samsung to set up mobile phone manufacturing facility in Pakistan by end of 2021
- Independent analysts say the facility may initially generate an annual revenue of about $300-600 million
- Pakistan’s mobile manufacturing policy is expected to bring down prices of locally produced handsets by about 50 percent
Pakistan to promote mineral sector at Saudi forum this month with 13 companies
- Delegation will take part in the Future Minerals Forum in Riyadh from Jan. 13-15
- Petroleum minister will lead Pakistan, participate in a 90-minute country session
ISLAMABAD: Around 13 Pakistani state-owned and private companies will attend the Future Minerals Forum (FMF) in Saudi Arabia from Jan. 13 to 15, an official statement said on Friday, as the country seeks to ramp up global engagement to develop its mineral resources.
The FMF is an international conference and investment platform for the mining sector, hosted by mineral-rich countries to attract global investors, companies and governments.
Petroleum Minister Ali Pervaiz Malik confirmed Pakistan’s participation in a meeting with the Saudi envoy, Nawaf bin Said Al-Malki.
Pakistan hosts one of the world’s largest copper-gold zones. The Reko Diq mine in southwestern Balochistan, with an estimated 5.9 billion tons of ore, is partly owned by Barrick Gold, which calls it one of the world’s largest underdeveloped copper-gold deposits. Its development is expected to boost Pakistan’s struggling economy.
“Upon an invitation of the Government of the Kingdom of Saudi Arabia, the Federal Minister informed the Ambassador that Pakistan will fully participate in the upcoming Future Minerals Forum (FMF), scheduled to be held in Riyadh later this month,” Pakistan’s Press Information Department (PID) said in an official statement.
The Pakistani minister will lead his country’s delegation at the FMF and take part in a 90-minute country showcase session titled “Unleashing Potential: Accelerating Pakistan’s Mineral Revolution” along with local and foreign investors.
Pakistan will also establish a dedicated pavilion to highlight the vast potential of its rich geological landscape to the global mineral community.
The Saudi envoy welcomed Pakistan’s decision to participate in the forum and discussed enhancing bilateral cooperation in the minerals and energy sectors during the meeting.
According to the statement, he highlighted the potential for cooperation between Saudi Arabia and Pakistan in the minerals and energy sectors, expressing confidence that the FMF would provide a platform to expand collaboration.
Pakistan’s mineral sector, despite its rich reserves of salt, copper, gold and coal, contributes only 3.2 percent to the country’s GDP and just 0.1 percent to global mineral exports.
However, many countries, including the United States, have shown interest in Pakistan’s underdeveloped mineral sector, particularly in copper, gold and other critical resources.
In October, Pakistan dispatched its first-ever shipment of rare earth and critical minerals to the United States, according to a Chicago-based US public relations firm’s report.
